Stora Enso Oyj Class A · OMXHEX:STEAV
Stora Enso Oyj Class A — Q2 2025 Earnings Presentation
43 slides from Stora Enso Oyj Class A's earnings presentation, 2025
Slide 1: Financial results Q2 2025
Financial results Q2 2025 Solid business performance in a volatile demand environment The EcoFlowerBox by Stora Enso made from corrugated board
Slide 2: Topics
Topics: 1. Key highlights and Hans Sohlström strategic focus areas 2. Financial performance Niclas Rosenlew 3. Key takes - focus for Hans Sohlström 2025 Product: CarrEco Brown –unbleached uncoated board 2
Slide 3: Key highlights and strategic focus areas
Key highlights and strategic focus areas Hans Sohlström, President and CEO Products: FBB - Performa Light, Performa Nova, CUK – CKB (Coated kraft back) 3
Slide 4: Key highlights Q2
Key highlights Q2 2.4 (5%) 126 (-18%) 7% (-2% points) Sales, BEUR and sales growth Adjusted EBIT, MEUR Operating working capital to sales ratio We continue to build a better Stora Enso - Agreement to divest 12.4% of our Swedish forest asset - Initiated a strategic review of the remaining Swedish for
Slide 5: Recent initiatives strengthening our strategic focus on renewable packaging
Recent initiatives strengthening our strategic focus on renewable packaging SALE OF 12.4% OF SWEDISH FOREST Enhance financial flexibility through monetisation of assets while securing long-term wood supply Profit Performance STRATEGIC REVIEW OF SWEDISH FOREST ASSETS Assess options to unlock the full
Slide 6: Unlocking the full potential of both our industrial and forest assets
Unlocking the full potential of both our industrial and forest assets Stora Enso Swedish Forest • Stora Enso is a global leading renewable • Leading Swedish forest owner, optimally packaging company with sustainability at the located in central Sweden, with proximity to core of the business strong s
Slide 7: Focus on accelerating synergies to support renewable packaging profitability and growth
Focus on accelerating synergies to support renewable packaging profitability and growth Oulu Enocell PS Fin Varkaus Imatra Skutskär Heinola Fors Skoghall Anjalankoski Enocell • Oulu • Fors • Skoghall PS Baltics PS Swe Consumer board mills Beihai Containerboard mills Ostroleka Market pulp mills PS Be
Slide 8: Financial performance
Financial performance Niclas Rosenlew, CFO Products: FBB - Performa Light, Performa Nova 8
Slide 9: Solid business performance in a volatile demand environment
Solid business performance in a volatile demand environment Year-on-Year comparison • Sales increased by 125 MEUR or 5% • Adj. EBIT decreased by 27 MEUR • Higher deliveries • Ongoing Oulu consumer board line ramp up impacted second • Structural changes had a positive impact as both the quarter resul
Slide 10: Solid business performance while ramping up the new consumer board line
Solid business performance while ramping up the new consumer board line Year-on-Year comparison 10
Slide 11: Oulu consumer board line ramp-up impacting profitability and cash flow
Oulu consumer board line ramp-up impacting profitability and cash flow • Since 2023, the profitability has improved gradually • Cash flow from operations has benefitted from OWC reductions throughout 2024 and ongoing • The OWC reductions impacting cash flow have stabilised • As the heavy investment
Slide 12: Net debt to adjusted EBITDA and operating working capital development
Net debt to adjusted EBITDA and operating working capital development 12
Slide 13: Overview of segment financial performance
Overview of segment financial performance Year-on-Year comparison Share of Share of 45% external 11% external sales sales • Sales increased slightly by 1.8% to 1,159 (1,138) MEUR • Sales increased by 7.1% to 272 (254) MEUR • Higher prices for containerboard and a slight increase for • Higher volumes
Slide 14: Overview of segment financial performance
Overview of segment financial performance Year-on-Year comparison Share of Share of Share of 12% external 18% external 13% external sales sales sales • Sales decreased by 8.5% to 378 (413) MEUR • Sales increased by 19.1% to 494 (414) MEUR • Sales increased by 20.8% to 833 (690) MEUR • Lower sales pr
Slide 15: Key takes - focus for 2025
Key takes - focus for 2025 Hans Sohlström, President and CEO Product: EcoFreshBox made from virgin corrugated 15
Slide 16: Key takes - focus for 2025
Key takes - focus for 2025 Building a stronger and more profitable Stora Enso - Continue the work across the whole company to improve profitability, cash flow, and cost competitiveness through a focus on sourcing, operational efficiency, commercial excellence, working capital, and fixed costs - Comp
Slide 17: Disclaimer
Disclaimer It should be noted that Stora Enso and its business are exposed to various risks and uncertainties and certain statements herein which are not historical facts, including, without limitation those regarding expectations for market growth and developments; expectations for growth and profi
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Slide 19: Development of long-term Group financial targets
Development of long-term Group financial targets Group long-term financial targets Q2/25 Q2/24 2024 Dividend (annual) in EUR /share To distribute 50% of EPS excluding fair valuation over N/A N/A 0.25* the cycle Growth YoY > 5% 5% -3% -4% Net debt to adjusted EBITDA < 2.0x 3.3 3.5 3.0 Net debt to equ
Slide 20: Surpassing 2030 target of 50% reduction in Scope 1 and 2 CO2 emissions
Surpassing 2030 target of 50% reduction in Scope 1 and 2 CO2 emissions Climate change Circularity Biodiversity -50% 100% Net positive Targets Reduction in absolute Recyclable products Impact on biodiversity emissions by 2030 (Scope 1,2,3) by 2030 by 2050 Committed to reaching -59% net-zero CO2 Scope
Slide 21: Oulu ramp-up and higher maintenance activity weighted on earnings
Oulu ramp-up and higher maintenance activity weighted on earnings partly offset by increased prices Quarter-on-Quarter comparison 21
Slide 22: Finalising the heavy investment phase
Finalising the heavy investment phase Capital expenditure development MEUR Strategic capex • High strategic capex phase during 2023 and 2024, due to the 1.1 BEUR consumer board investment at the Oulu mill in Finland, is coming to an end 22
Slide 23: Steadily increasing forest value
Steadily increasing forest value Group forest assets BEUR 10.0 9.3 8.8 8.9 9.0 • Fair value** of 9.0 BEUR 9.0 8.3 8.7 8.6 8.7 8.0 8.0 8.2 8.1 8.3 8.1 8.3 equivalent to EUR 11.40 per share 8.0 2.4 2.3 7.2 7.4 7.4 2.6 2.3 2.6 2.6 2.6 • Forest asset value increased by 7.0 2.7 2.6 2.6 2.5 2.5 2.9 2.8 2.
Slide 24: Stora Enso – Group sales by end use
Stora Enso – Group sales by end use Group sales by end use (FY/2024)* Construction 12% Consumer end uses (packaging) 65% Industrial end uses 23% Food & beverages 38% Other industrial Pharma & 5% Personalcare 10% E-commerce 3% Industrial packaging 18% Other consumer 14% *Excludes forest division 24
Slide 25: Strategic growth areas represented 57% of Group sales in Q2/2025
Strategic growth areas represented 57% of Group sales in Q2/2025 Sales FY/2006 Sales Q2/2025 Sales in ~FY/2030 30%* 57%* 80%* Strategic growth areas Strategic growth areas Strategic growth areas Paper Foundation sales Foundation sales Calculations are based on external sales *Strategic growth areas
Slide 26: U.S. import tariffs – risks and opportunities
U.S. import tariffs – risks and opportunities Tariff status: U.S. imports and exports of board and softwood pulp in 2024 • Limited impact at current tariff rates 2.1 1.3 • Limited sales to the U.S., less than 3% of total sales in 2024 Cartonboard1) (million tonnes) 1.7 0.8 • Main risk is the overall
Slide 27: Overview per segment, LTM
Overview per segment, LTM* Sales, MEUR Packaging Materials Packaging Solutions Biomaterials Wood Products Forest Adjusted EBIT, MEUR and Adjusted EBIT Margin, % Packaging Materials Packaging Solutions Biomaterials Wood Products Forest Adjusted EBIT Adjusted EBIT margin *LTM= last twelve months 27
Slide 28: Planned maintenance shutdowns impacting quarterly results
Planned maintenance shutdowns impacting quarterly results Group total planned maintenance impact Planned maintenance shutdowns in 2025 on adjusted EBIT Packaging Materials Biomaterials MEUR 200 Q1: - Q1: - 180 Q2: Beihai, Langerbrugge Q2: Skutskär 180 Q3: Oulu, Heinola, Varkaus Q3: Enocell Q4: Anjal
Slide 29: Net financial items
Net financial items MEUR Change Change Q2/25 Q2/24 Q1/25 Q1/25-Q2/24 Q2/25-Q1/25 Net interest expense -38 -32 -6 -31 -7 Average interest rate* 3.3% 4.1% 3.7% Foreign exchange gains and losses 6 -4 11 4 2 Other financial items -12 -12 0 -13 1 Total net financial items -44 -49 5 -39 -5 *Quarterly gros
Slide 30: Net FX effect per division
Net FX effect per division MEUR Packaging Materials Packaging Solutions Biomaterials Wood Products Forest -10 -5 0 5 10 15 20 Q2/2025 y-o-y Q1/2025 y-o-y Q4/2024 y-o-y Q3/2024 y-o-y Q2/2024 y-o-y 30
Slide 31: Maintaining a strong liquidity position
Maintaining a strong liquidity position MEUR Liquidity position at the end of June 2025 3,500 • Liquidity at the end of June 2025: 100 100 3,000 − 1.5 BEUR cash and cash equivalents 200 435 100 700 200 − 700 MEUR committed revolving credit facility fully 2,500 435 400 undrawn 700 700 100 2,000 700 −
Slide 32: Maturity profile 2025
Maturity profile 2025 June 2025 MEUR 1,400 12% 1,300 25% 1,200 1,100 Bonds 1,000 Loans from Financial Institutions 900 Joint Venture Financing 14% 800 15% Commercial Papers 700 Loans from Wood Suppliers 600 11% 11% Other Loans / Liabilities Committed Credit Facility 500 400 6% 300 200 2% 100 1% 1% 1
Slide 33: Stora Enso's wood and energy self-sufficiency
Stora Enso’s wood and energy self-sufficiency Group energy self-sufficiency excl. JVs 2025e Group wood self-sufficiency by country 2024 100% 86% 76% 75% 74% 79% 65% 23% Total energy Fuels Electricity Finland Sweden Uruguay Brazil China 33
Slide 34: Group energy balance in detail
Group energy balance in detail Group energy balance estimate excl. JVs 2025e Impact on non-hedged volume on MEUR operating profit from 10% change p.a. TWh/a for the next 12 months in: 50 Electricity market price ~1,2 40 Self-sufficiency 74% Fossil fuel price ~4,0 30 20 Self-sufficiency 79% Energy he
Slide 35: Biomass as primary fuel source
Biomass as primary fuel source Group fuel consumption Q2/2025 2% 1% 3% 3% Biomass Coal Gas Fuel Oil Other Fossil 91% Stora Enso Group’s total Q2/2025 fuel consumption was 6,8 TWh 35
Slide 36: Pulpwood and sawlog price development in Finland
Pulpwood and sawlog price development in Finland Pulpwood, Pine Sawlogs, Pine 90 80 70 60 50 EUR /m3 40 30 20 10 0 Q115 Q315 Q116 Q316 Q117 Q317 Q118 Q318 Q119 Q319 Q120 Q320 Q121 Q321 Q122 Q322 Q123 Q323 Q124 Q324 Q125 Source: Luonnonvarakeskus 36
Slide 37: Forest property market transaction-based price development
Forest property market transaction-based price development Index Sweden SEK/m3fo 1,000 900 800 700 600 500 400 300 200 100 0 1995 2000 2005 2010 2015 2020 2024 Southern Sweden Central Sweden Northern Sweden Sweden Source: Ludvig & Co 23 January 2025 report, based on nominal prices 37
Slide 38: Hardwood pulp inventories rose while softwood inventories went down
Hardwood pulp inventories rose while softwood inventories went down, pulp prices declined Inventory levels Price development Inventories in days USD/ tonne Europe NBSK/USD, Delivered 90 Bleached softwood kraft 1,800 Europe BHKP/USD, Delivered 85 pulp 80 China BHKP/USD NET, Delivered 1,600 75 China N
Slide 39: Cost-driven price increases in containerboard and folding box board
Cost-driven price increases in both containerboard and folding box board Containerboard price development Folding Box Board price development EUR EUR /tonnes /tonnes 1,600 1,400 1,500 1,200 1,400 EUR (average) per ton EUR (average) per ton 1,000 1,300 800 1,200 600 1,100 400 1,000 200 900 0 800 PIX
Slide 40: Paper for recycling price development
Paper for recycling price development 320 PIX OCC Europe* PIX ONP/OMG Europe** 280 240 200 EUR /tonne 160 120 80 40 0 Q216 Q416 Q217 Q417 Q218 Q418 Q219 Q419 Q220 Q420 Q221 Q421 Q222 Q422 Q223 Q423 Q224 Q424 Q225 Source: Fastmarkets FOEX *OCC: Old corrugated containers **ONP: Old newspapers - OMG: O
Slide 41: Indicators driving the demand for packaging
Indicators driving the demand for packaging Private consumption Industrial production Annual growth rate (%) Annual growth rate (%) 12 10 11 8 10 6 9 8 4 7 2 6 0 5 4 -2 3 -4 2 -6 1 0 -8 2021 2022 2023 2024 2025F 2026F 2021 2022 2023 2024 2025F 2026F EU UK US China Source: Consensus, The World Bank “
Slide 42: Indicators for demand development in packaging
Indicators for demand development in packaging GDP Inflation 10 Annual growth rate (%) 10 Annual growth rate (%) 9 9 8 8 7 7 6 6 5 5 4 4 3 3 2 2 1 1 0 0 2021 2022 2023 2024 2025F 2026F 2021 2022 2023 2024 2025F 2026F EU UK US China Source: Consensus 42
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